Front-End DTI

Front-end DTI isolates housing cost against income, ignoring car loans, student loans, and credit cards. It answers a focused question: how much of your paycheck goes to the roof over your head. The 28 percent figure is a long-standing rule of thumb, the first half of the 28/36 rule, not a hard limit.

Lenders weigh the back-end ratio (all debts) more heavily during underwriting, so a healthy front-end number alone does not guarantee approval. Thresholds vary by loan type, credit profile, and compensating factors like cash reserves. Treat 28 percent as a comfort guideline that keeps room in your budget rather than a line you must hit.